Amortization is a process of paying a debt from loan or mortgage over a pre-defined period of time into smaller installments. The amount you get from a loan or house mortgage has to be paid back with additional amount of interest on the loan. People don’t have enough money to buy a house or a vehicle all the time so they get financial help from a bank or Loan company who gives them the money they need and get it back over a few years with interest. There are some factors in this process that need to be explained such as “principal” and this is explained as the actual amount of money you borrowed from the bank. Interest rate is defined as the additional money you pay to your loan company and term is defined as the period of time over which you have to pay the full amount back to the person or company you lend the money from.

The calculation of the principal amount, the interest rate and the amount of each installment is called amortization scheduling. By this process you get to know about the additional money you have to pay back in form of interest and the span of years over the actual amount has to be paid in full. This also provides an amount for the installments both monthly and yearly. The amortization schedule calculator is a process which helps us to find the interest rate, additional amount you have to pay, amount of each installment and the actual duration of time when the loan amount will be paid in full. This is a lot easier than the previous manual calculations because with the help of this calculator, there is no room for an error or mistake and you can plan the entire upcoming years in which you will be paying the installments.

As the computer and common calculator have made it quite easy to calculate huge amounts within seconds and without a single error or mistake, the amortization calculators have made it easy for the banks, loan companies and borrowers to find just the right plan according to their situation. Before even making a single installment or getting the actual money, you can get to know the duration of time over which you will be making the installments for your mortgage and the rate of interest that the bank has applied. This calculator is also very important as you can’t imagine of getting a loan without knowing the interest rate, the additional amount you have to pay with the principal and the amount of years for making the installments.

The main benefit of an amortization schedule calculator is that you can actually see that what your amortization process would look like over the next few years. This way when you see a picture of the next year or the year after that, it makes you stop and think if this is the right deal for you. Having facts and figures right in front of your eyes helps you to make a decision more effectively. This calculator helps you to find that where would you be standing after a few years when a certain amount of installments would be paid? In case the bank or loan company changes the interest rate, you can easily calculate the new amount within a few seconds with the help of this calculator. If the loan agency is hiding something from you or if there are some hidden charges that you are not aware of, you can realize that through this calculator.

Here is preview of this Amortization Schedule Calculator Template,

**Use of amortization schedule calculator in daily life:**

- Banks use it to find the amount of installments and interest rate of principal amount when someone applies for a loan or home mortgage.
- Loan companies use it to find the interest rate for a principal amount when some individual or a business asks to loan money.
- Individuals and businesses use this calculator when they want to apply for a loan.
- People generally use it to check if this loan company fulfills their needs.
- One uses it to see the real time picture of his financial situation after a certain number of years once he has applied for a loan or mortgage.
- In case of a misunderstanding or possibility of an error, both creditor and debtor use this calculator to find if there is a mistake in some calculation.
- If the lender thinks there are some hidden charges in the loan scheme that the bank or that loan company is not showing, he uses this calculator to check if all the figures are accurate.

Here is download link of this Amortization Schedule Calculator Template,